While you may have seen numerous infomercials telling you how you can easily make thousands of dollars per month with rental property by simply sitting at your kitchen table, the reality is that it isn’t quite that easy (although you can make thousands of dollars per month – or more – with investment property). Although there are any number of tips and tricks of the trade that can help first time landlords to get started, there are three in particular that, if you focus on, you can catapult your success right out of the starting gate. These include:
1) Making Rent Collection Your #1 Priority. First and foremost, unless you are offering homes for people out of the goodness of your heart, it is absolutely essential to focus on rent collection, as this is your primary revenue source in your real estate endeavor. In this case, be sure that you set the rules up front. And, if your tenant stops paying their rent, it’s not out of the question to start the eviction proceedings sooner rather than later.
2) Properly Screening Tenants. Making sure that the tenants you accept into your property will treat your investment with care, and that they have the ability to pay the rent you’re asking. In addition to running a credit and employment check, talking to prior landlords can help you to determine whether or not an applicant is right.
3) Not Making Unnecessary – and Unprofitable – Renovations. Although a picture perfect property can be enticing to high quality tenants, it is important not to go too far when fixing up or renovating your properties. Before deciding what you will and won’t do, be sure to ask whether or not completing a particular renovation will lead to more profit – or just take money out of your pocket.
It can also be important to ensure that you’re spending your time wisely. Because managing tenants and property maintenance can be time consuming, hiring an experienced property manager can be beneficial.
For more information on how to best delegate your property management duties, while still profiting from your investments, Contact Us.